You're ready to list, but are you ready to sell? Let's say that on the first day your home is for sale, your agent shows it to prospective buyers. They love it, and sign a purchase offer of the spot. You were asking $145,000, and they offer $138,900. Because they are relocating, they need an answer right away, by 6:00 PM. What do you say?
You don't say, "We just can't give you an answer that soon." These buyers are motivated and prepared to buy your home, with a written offer and earnest money deposit.
So how do you make up your mind so quickly? You must simply decide what your rock-bottom price is before your home is even shown. Be prepared to negotiate on-the-spot by first asking your agent for a "net" sheet based on the offer price.
The net sheet will show what expenses must be paid out of the gross sales price. You must subtract closing costs, brokerage fee, the payoff of your existing mortgage (or mortgages,) real estate taxes, and home warranty costs, resulting in the "net" proceeds that you will receive at the closing.
At the listing appointment, ask your agent to figure net sheets based on receiving 95% or 90% of the asking price. This helps you determine the absolute lowest offer you can accept. Once you know that figure, you'll be able to make a knowledgeable decision.
